2021 CSBS Community Bank Case Study Competition Journal

THIRD PLACE: Southeastern Louisiana University of applications at a time. Liberty employees worked overtime, and sometimes through the night to get their customer loans booked in a timely manner. Although SBA corrected that inequity, other concerns regarding compliance with the Small Business Association’s (SBA) requirements were often not clear. Again, companies in mind. Some of these small businesses that Liberty rejected could not provide the proper payroll documents; specifically form 941. No New Programs but Expanded Online Services During COVID-19 COVID-19 has impacted the black community

larger banks have an advantage with in-house employees that can adapt to policies quicker than a community bank. The larger banks can get their programs in compliance, often before the policies are formally released. These disparities pushed customers away from smaller banks and toward the larger since they were able to process loans faster. New Customers: Over the course of the pandemic, Liberty has been flooded with more deposits and qualified borrowers for two reasons: PPP and the Black Lives Matter movement. Large banks focused on serving their larger clients amidst the pandemic and neglected smaller companies. This drove small business PPP loans to Liberty, particularly after the SBA leveled the playing field with regard to access on their platform. Liberty required every PPP loan to be deposited into a small business deposit account introducing new customers to Liberty. Furthermore, as funds in round two have run out for majority banks, the funding reserved for MDIs still remains, again driving PPP business toward Liberty. SBA Not Approved: Although a vast majority of Liberty’s PPP loans were booked, it is a challenge to get the small businesses in Liberty’s communities to qualify for PPP. The qualifications were created with larger

more than other races or ethnic groups. Ensuring continuity of services has been important to Liberty. During the pandemic, Liberty did not create any new programs but the bank expanded its online platform to meet the needs of its clients. Customers are able to apply for loans, open accounts, and deposit checks all online, downplaying the need for brick-and- mortar branches. Balance sheet Impacts: Marketable Securities Volume, Loan volume, Deposit Volume, and Capital Levels At the beginning of 2020, forecasting the series of unexpected events that would unfold in our economy and our country’s social fabric would

During the pandemic, Liberty did not create any new programs but the bank expanded its online platform to meet the needs of its clients.

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